Law for business Essay Example | Topics and Well Written Essays - 2000 words

Law for business - Essay Example A person who makes an offer is called as an offeror; and a person who receives that offer is called as an offeree. It is utterly important that offeror must make an offer to offeree. This would start a process of contract. Before going to reach a point of a valid contract, the valid contract may come across points like invitation to treat, counter-offer, query, time to consider, they may not make the contract valid; rather they may create other types of contracts. And some of them may revoke the valid contract. But, some scholars do not agree on one theory of contract; rather, there are two theories of contract-Will Theory and Declaration Theory (Beever, 2009). The main purpose of this report is to advice Acorn Antiques Ltd whether it should be ready to pay for legal liabilities for the injuries sustained by one of its customer, Erica, in the shop and whilst travelling to the hospital. To give a piece of advice, it is important to understand some basic information about the company a nd its employees. Acorn Antiques Ltd is run by two directors: Mr Clifford and Miss Babs; they have employed two people, Miss Berta, a sales person, and Mrs Overall, who provides the cleaning and catering services in the company. In order to give a piece of advice to Acorn Antiques, it is utterly significant to understand whether any contract exist between the injured party and the company. If a contract is established between Erica and Acorn Antiques Ltd, this would clearly require Acorn Antiques to pay for legal liabilities. If the contract is not established between Erica and the Acorn Antiques, no legal liabilities could be established or advised to the company. In the subsequent parts of this report, all the elements of contract are discussed for the purpose of determining whether they exist between the customer and the company. On the basis of this discussion, a piece of advice is given to the company. Contract: Definition and elements A contract encompasses offer and acceptanc e. According to Sir Frederick Pollock contract is defined as â€Å"a promise or set of promises which law will enforce,† (Keenan et al., 2009, p.204). This means, if a contract is established between the contracting parties, and it is legally bonding as well, in this case, it becomes a responsibility of law to enforce the elements of contract. Additionally, to enter into a contact, offeror must make an offer to an offeree. And in return, the offeree must accept the offer. These are the fundamental elements of the contract. The establishment of offer and acceptance creates a contract. If offer is made but acceptance is not made by the offeree, in this case, legally contract cannot be established. To establish the contract, both, offer and acceptance, must exist. Offer Offer contains fundamental ingredients of the contract (Emerson, 2009). An offer is an expression of willingness to the specific terms of contract, these terms are established with the intention that they would b ecome binding as soon as these terms are accepted by the offeree (Treitel, 2003). An offer determines the terms on which an individual shows his willingness to enter into a legally enforceable contractual relationship with another person. An offer must be capable of acceptance; it must be understandable and it must not be vague or unclear (McKendrick 2010, p136). Offer, once accepted, may become legally enforceable but many times all statements would not be amount to an offer. It is significantly important to make a